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Irkut signs USD 5 bln contract for supply of 50 MS-21 planes to Malaysia

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This is a rather mysterious story from Russia - how credible is this?

 

 

 

MOSCOW, June 7 (Itar-Tass) --The corporation Irkut on Monday signed a contract with Crecom Burj Resources for the supply of 50 MS-21 planes to Malaysia.

 

“The sum of the contract is estimated at five billion U.S. dollars,” a source close to the negotiations told Itar-Tass.

 

The first supplies will begin in 2014, he said.

 

“After that the planes will be leased to air lines,” the official said, adding that several Southeast Asian air carriers have already expressed interest in the Russian MS-21 plane.

 

“The work on the plane is proceeding as scheduled. We have completed the rough design and started working on technical design,” Industry and Trade Minister Viktor Khristenko said earlier.

 

“This is a breakthrough-like product that should enter the global market in 2016-2017 and be 15 percent more efficient than the current offers,” he said earlier.

 

The project was drafted in 2008. In 2009, a tender was held and a contract of about 1.5 billion roubles was signed for the development of the paper vehicle. In 2010, more than five billion roubles will be allocated for this project.

 

Khristenko believes that the implementation of this project will mean “the creation of a whole range of new technologies, including the so-called black, or composite, wing. A tender for it has been held. The winner is the United Aircraft Corporation”.

 

“Despite challenging financing obligations, we have all the funds for the near future. They have been concentrated and we will strictly stick to them,” the minister added.

 

He said, “We plan to increase the share of civil aircraft on the global market from 1 percent now to 10 percent in 2020, and we have the opportunity to fulfil this ambitious task.”

 

MS-21 planes will have a wider body for the comfort of passengers. They will have a better wing sweep to increase safety during landings and takeoffs. The wings will be a bit thicker in order to take on mire fuel, which will allow the planes to travel greater distances.

 

All these factors will negatively affect aerodynamic properties of the planes. “This makes the success of the scientists who have improved this crucial property of any aircraft all the more important,” Zhukovsky Central Aerodynamic Institute (TsAGI) Director Sergei Chernyshev said.

 

MS-21 Programme Director Andrei Matveyev said, “Increasing aerodynamic properties of a plane even by 1 percent over several years is considered to be a big achievement.”

 

He said the new design would reduce operating costs by 12-15 percent as compared to that of existing foreign counterparts and give additional competitive advantages to the new plane.

 

The Yakovlev Design Bureau is the principal designer of the MS-21 plane. It is working under the federal programme “Development of Civil Aircraft in Russia”. The state contractor is the Ministry of Industry and Trade.

 

The MS-21 aircraft has been developed on the basis of Yak-242 type by the Yakovlev Design Bureau in association with the llyushin Aviation Complex. The MS-21 airplane has been readily embraced by the aircraft market since it meets all the requirements and can compete against similar Boeing and Airbus aircraft, outdoing them in price, fuel efficiency and passenger comfort.

 

For instance, aircraft of the MS-21 project were compared against Airbus company's A320 and Boeing's latest models, B717 and B737. The Russian aircraft features an improved passenger comfort cabin, enhanced fuel efficiency and a reasonable price. In terms of cost-to-effectiveness ratio, the new Russian aircraft will significantly outperform similar advanced aircraft offered by Western producers.

 

The MS-21 aircraft is to replace all models of Tu-154B and Tu-I54M aircraft as well as Yak-42 in Russia. It is planned to build around 600 aircraft of the MS-21 family within 20 years, with an annual production rate of 30 to 36 machines. It is planned to sell around 640 MS-21 aircraft in 2008-2009, including around 415 planes going to Russia's domestic market and 225 to foreign customers. The MS-21 will provide the basis for a whole family of aircraft, including an MS-21-100 plane capable of carrying 132 or 116 passengers in a two-class configuration, an MS-21-200 to carry 156 or 140 passengers in a two-class configuration, an MS-21-300 to carry 174 or 158 passengers in a two-class configuration, an MS-2IK to carry cargoes, an MS-21KP to carry cargoes and passengers.

 

The MS-21 jet and the Sukhoi SuperJet-100 passenger plane together may meet 80 percent of Russian air carriers' demand for new aircraft.

 

The Irkutsk aircraft plant will begin the production of MS-21 mainline planes in 2014.

 

MS-21 will be manufactured in three modifications, for 150, 180 and 210 passengers. The first plane will be built in 2014, while a new model will appear on the market in 2015-2016.

 

“The mainline MS-21 plane will replace the popular Tu-154. It's a very ambitious, colossal project, because by launching the production of MS-21, we are invading the world's elite aircraft making. This model will put competitive pressure on A-320 and Boeing-737,” United Aircraft Corporation President Alexei Fyodorov said earlier.

 

Source: http://www.itar-tass.com/eng/level2.html?NewsID=15203147&PageNum=0

 

http://www.youtube.com/watch?v=yHTdyoTZHi0

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I wonder how many Tuns, Tan Sris or Datuk is eligible to have one?

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Well Flee.... here's a story from our shore...

 

Tuesday June 8, 2010

Crecom unit signs RM17bil deal to buy aircraft

 

 

KUALA LUMPUR: Crecom Burj Resources Ltd (CBRL), a wholly-owned subsidiary of Crecom Burj Bhd, has signed a US$5bil (RM16.65bil) purchase agreement with Russia-based IRKUT Corp for the acquisition of 50 MC21 passenger aircraft.

 

IKRUT is the leading aircraft manufacturer in Russia.

 

CBRL is an investment company to establish and develop new business ventures/tie-up with foreign international companies.

 

The aircraft would eventually be leased out to airline companies, group chief executive officer of Crecom Burj, Mohamad Isa Abdullah said at the signing ceremony yesterday.

 

At the same event, CBRL also signed a memorandum of agreement with IBH Investment Bank Ltd, which will act as lead arranger for funding the aircraft’s purchase.

 

Mohamad Isa said delivery of the aircraft was scheduled for 2014.

 

“Some airlines in South-East Asia have shown an interest in leasing the aircraft,” he added. — Bernama

 

He said the Russian plane was chosen for its price competitiveness when compared with other aircraft in the market, as well as technology.

 

“We anticipate more business opportunities from Russia,” he added. — Bernama

 

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The aircraft would eventually be leased out to airline companies, group chief executive officer of Crecom Burj, Mohamad Isa Abdullah said at the signing ceremony yesterday.

 

At the same event, CBRL also signed a memorandum of agreement with IBH Investment Bank Ltd, which will act as lead arranger for funding the aircraft’s purchase.

 

Mohamad Isa said delivery of the aircraft was scheduled for 2014.

 

“Some airlines in South-East Asia have shown an interest in leasing the aircraft,” he added. — Bernama

 

 

I'm sure Asmara Air, Global Airlines and Silverfly will be interested.

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Crecom Burg and IBH Investment Bank Ltd are related, both incorporated in 2009 and is not a known player in the aircraft leasing business. Very curious to see how far they could go especially on aircraft financing.

 

:drinks:

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MS-21? Never heard of it before. Russia's version of Dreamliner (Dreamliner-ski)?

Edited by Tamizi Hj Tamby

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As these aircraft are not going to be operated by any one entity and are more likely to operate in small numbers by a diverse bunch of airlines, I am seriously concerned about their maintenance and the supply of components and spare parts.

 

Maybe candidates for this aircraft could include Firefly, Lao Airlines, Myanma Airways (the domestic airine that is not to be confused with Myanmar Airways International), Berjaya Air, Riau Airlines etc

 

KC Sim

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Sounds more like the usual attempt of taking money from one pocket, and putting it in the other.. have we all but forgotten this recent news?:

 

http://www.malaysianwings.net/forum/index.php?showtopic=14297

 

The component business probably needs a big order to kickstart revenue - and this illustrious order for 50 aircraft would be fit. I would NOT like to see Firefly/Berjaya/MASWings operate this aircraft because although it 'may' turn out to be good and reliable - branding and image wise - I don't think it is very good for our aviation image.. and it will be too much a cost burden on MAS/Government to implement such a small fleet...

 

If Firefly wants to go for regional jets, I say the CRJ series would be the best bet - We already have a strong link with Bombardier and maintenance experience with such aircraft through AIROD - a company that desperately needs to expand beyond air-force/C130 hercules contracts...

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Sandeep G : I would NOT like to see Firefly/Berjaya/MASWings operate this aircraft because although it 'may' turn out to be good and reliable - branding and image wise - I don't think it is very good for our aviation image..

 

I fully agree and having flown previously with Firefly and coming away loving this airline, I too would not want to see them operating the MS-21. But Firefly is a subsidiary of MAS and MAS is probably going to feel the heat to take on some of these MS-21s for Firefly and MASwings (if these find few takers among regional and foreign airlines).

 

Back to my original concern about maintenance and components support. If a relatively minor fault grounds the aircraft for several days awaiting an AOG part to arrive from Russia, it will become a civilian version of the problems that air forces such as India's (and perhaps to a certain extent, Malaysia's) face with the MIG-29s. This is something no small airline with a limited fleet can afford.

 

The performance and reliability of such an un-tried and un-tested airliner is totally unknown . . . taking on a fleet of 50 aircraft at this stage is a huge gamble. Does anyone know if this was paid in colourful Ringgits, the greenbacks or bartered using palm oil?

 

It would be a lot easier to understand the deal if payment was made in palm oil. Targeted foreign sales for the MS-21 seems extremely optimistic when one considers the sales record of planes such as the TU-204 and IL-96, two of Russia's more recent (or less ancient) aviation products. Neither is a screeming success by any measure and mirrors the record of the MA-60 from China.

 

KC Sim

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KC and others,

 

I don't know about palm oil exchange in this case - to what extent is the Federal Government involved in negotiations is another concern... Interestingly enough, large - reliable aviation media sources such as ATW, Flightglobal and Janes have not spoken a word nor irked a shrug towards this USD$5 Billion order.. so credibility again of Malaysia's corporate identity may once again crumble that little bit more..

 

Each time I think about it, I think that it is more and more linked to the decision/proposal by Irkut to have a manufacturing facility in Malaysia for both military and civillian aircraft... This already would hamper the ability of the TUDM to acquire more trusted/cost effective western fighters such as the FA-18 Super Hornets/Eurofighter Typhoon/Dassault Rafale...

 

The government has to realise that the French and the Russians appear to be milking us with sub-standard hardware - the MiG29 - beautiful as they are - BUDGET BURDEN!

 

The submarines that don't submerge - Merci, Thales!

 

The PT90 Tanks that we don't hear much about anymore - Thanks Poland..

 

And now, are we going to commit to 50 MS-21 aircraft as a possible "LAUNCH CUSTOMER???" - What the HAY! Why? Why can't we be a bit more comfortable and go with the C-Series or something like that.....

 

Malaysia... please... wake up...

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And now, are we going to commit to 50 MS-21 aircraft as a possible "LAUNCH CUSTOMER???" - What the HAY! Why? Why can't we be a bit more comfortable and go with the C-Series or something like that.....

 

Malaysia... please... wake up...

Unfortunately, Malaysian politicians mix politics with business in an effort to enrich themselves first before they even think of serving the people. :(

 

MS-21 is supposed to be a civil airliner. If it follows the MiG-29 in terms of maintenance, then its future is bleak. As such, any success oriented company should stay away from such politically motivated projects.

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